Hultgren Supports Bill to Boost Employee Investment and Take-Home Pay
Washington, DC — U.S. Representative Randy Hultgren (IL-14) supported House passage of H.R. 5719, the Empowering Employees through Stock Ownership Act, a bill he cosponsored which would allow employees to defer taxes on income they make from stock they are given by their employers. The move would encourage employee ownership, and personal and financial investment in these businesses. This tax incentive would also increase employee take-home pay by allowing them to get a higher return on their investment.
“I am encouraged by efforts in the House this year to better engage and incentivize employees to contribute to their companies’ success,” said Rep. Hultgren. “Workers who own a stake in the business they work for every day have an interest in seeing the business succeed. It is best for businesses when its success is tied to the hard work and investment of its employees.”
Rep. Hultgren’s employee ownership bill, the Encouraging Employee Ownership Act, passed the House as part of the Capital Markets Improvement Act earlier this year. The bill opens up more opportunities for employees to share a stake in the companies that employ them.
Warren Ribley, President and CEO of the Illinois Biotechnology Industry Organization, an association that represents companies and thousands of their employees in the 14th Congressional District, believes that making it easier for companies to offer employees stock and ownership helps Illinois businesses grow, and offer these opportunities to more workers. “As someone who has worked in economic development for most my career, I know that offering an ownership stake to employees is a critical tool in recruiting top talent to job-generating companies,” said Mr. Ribley. “There is no doubt that an equity stake encourages employees to drive hard for success of the enterprise.”
“This movement toward employee stake in smaller and mid-market companies is important to employers and their workers, job creation, access to capital and the economy as a whole,” said Rep. Hultgren.